Replacement Allocation Clause Samples
The Replacement Allocation clause defines how assets, goods, or services will be substituted if the originally agreed-upon items become unavailable or unsuitable. Typically, this clause outlines the process for selecting replacements, such as requiring the substitute to be of equal or greater value and quality, and may specify timelines or approval procedures for the replacement. Its core practical function is to ensure continuity and minimize disruption by providing a clear mechanism for handling unforeseen shortages or changes, thereby protecting both parties’ interests and expectations.
Replacement Allocation. (i) Upon the occurrence of any condition permitting the replacement of a Lender, the Administrative Agent in its sole discretion shall have the right to reallocate the amount of the Commitments of the Affected Lenders, including without limitation to Persons which are not already party to this Agreement but which qualify as Eligible Assignees, which election shall be made by written notice within thirty (30) days after the date such condition occurs.
(ii) If the aggregate amount of the reallocated Commitments is less than the Commitments of the Affected Lenders, (A) the respective Commitments of the Lenders which have received such reallocated Commitments shall be increased by the respective amounts of their proposed reallocations, and (B) the Borrower shall have the right to add additional Lenders which are Eligible Assignees to this Agreement to replace such Affected Lenders, which additional Lenders would have aggregate Commitments no greater than those of the Affected Lenders minus the amounts of the Commitments already reallocated.
(iii) Notwithstanding any provision in this Section 2.15 to the contrary, no Lender may have such Lender’s Commitment increased pursuant to the provisions of this Section 2.15 without such Lender’s written consent.
Replacement Allocation. ▪ A replacement allocation is provided to the home department of the Academic Council chair and vice chair to address needs arising directly or indirectly from their absence while serving in the systemwide Academic Senate. This agreement sets the replacement allocation at the Professor Step I rate on the appropriate home department(s) salary scale(s) of the chair and vice chair, including benefits calculated at the current Composite Benefits Rate.